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BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS
VIEW FROM THE TOP of manufacturing CEOs report that employee retention rates have improved or remained stable in 2024. 94%
GAME, SET, MATCH
61% 35% 42% 35% 43%
find it easier to fill job openings now compared to the start of the year. plan to expand their workforce in the next year (vs. 50% nationally). expect the economy to improve in the year ahead (vs. 32% nationally). expect to increase revenue in the year ahead (vs. 63% nationally). expect to increase investments in the next 12 months (vs. 34% nationally). – Vistage survey
Starting in 2025, Wimbledon will replace its human line judges with AI to help improve efficiency in officiating. The AI technology, called the Hawk-Eye system, aims to provide “maximum accuracy” in calling lines and faults, minimizing the chances of human error. At the heart of this new AI system are 12 high-definition cameras placed around each of Wimbledon’s 19 grass champion courts, accompanied by sensitive microphones that can hear the ball’s impact. Together, they will track the ball’s trajectory in real time, ensuring every call is as precise as possible. A video operator will monitor the whole operation from an external room, and will be in direct communication with the chair umpire.
MATERIALS ON THE MOVE
of retailers have higher inventory levels than last year, with almost one fifth (19%) reporting they are significantly higher. of retailers started their 2024 holiday promotional sales by the end of October, with close to half (47%) starting as early as September. of retailers are using AI to minimize return rates by offering more detailed product descriptions and sizing information.
56% 62% 47%
–goTRG 2024 Holiday Returns Report
JUNKYARD JACKPOT Three ultra-rare Lamborghini Miuras were recently unearthed from a New York junkyard, where they had been gathering dust for decades. Lamborghini produced only a handful of these models in the 1960s and 1970s. Naturally, collectors were clamoring to restore them to their former glory, despite the monumental effort and expense involved. Sotheby’s put the three cars up for auction, with estimates for the 1968 Miura P400 and 1969 Miura P400 S ranging from $500,000 to $700,000 each, while the 1967 Miura P400—missing its engine and transmission— was valued between $350,000 and $450,000.
A new robotics startup aims to reduce the labor intensity and complexity associated with moving materials in warehouses and factories. Mytra has built a system that relies on just three pieces: a customizable bot, a modular storage rack (pictured), and an intelligent software stack. The bot, roughly the size of a pallet, automatically moves in any direction within the assembled storage matrix and can lift up to 3,000 pounds. The storage system, which can be assembled at any length or width and up to 80 feet tall, consists of steel cells with minimal moving parts that require no power and can be put together in several different configurations. The AI software, designed to automate route optimization and inventory management for the bots, can avoid traffic jams while eliminating the need for fixed inventory slots.
November 2024 • Inbound Logistics 1
CONTENT PARTNERS 20 INVESTMENT GROWTH SEEN IN SUPPLY CHAIN TECHNOLOGIES THAT EMPOWER HUMAN WORKFORCE Offered by MHI 21 EDI ISN’T DYING—IT’S EVOLVING AND CAN BE INTEGRATED WITH API Offered by SMC 3 22 CUSTOMER SERVICE—A MAGNET FOR MORE BUSINESS Offered by Landstar CONTENTS NOVEMBER 2024 | VOL. 44 | NO. 11 INFOCUS 1 INFO SNACKS 14 NOTED 16 TAKEAWAYS 58 IN BRIEF 64 LAST MILE Pallet, meet drone
FEATURES 30 FAST TRACK TO EXPEDITED SHIPPING SUCCESS Expedited shipping helps organizations elevate competitive edge, enhance customer satisfaction, and swiftly respond to supply chain disruptions—all while keeping inventory costs in check. 36 EXPEDITED CARRIERS GUIDE Reliable expedited freight services are crucial for businesses that need to move critical, time-sensitive goods quickly and cost-effectively. Find your next expedited partner in this guide. 42 SHIPPERS GET ON BOARD WITH AIR CARGO With ecommerce growth soaring and global trade accelerating, demand for air cargo solutions is rising. Can capacity keep up with the industry’s rapid ascent? 46 SPONSORED DC AUTOMATION GETS REAL These systems are doing the heavy lifting to boost warehouse efficiency in today’s modern distribution centers.
INFO 56 SUPPLY CHAIN INSIGHTS 60 CALENDAR 62 RESOURCE CENTER INPRACTICE
64
12 LEADERSHIP: SETTING THE LTL WORLD ON FIRE As executive director of
INSIGHT 4 CHECKING IN What happens when robotics, Starlink, and AI converge? 8 10 TIPS Upgrading your supply chain skill set 10 GOOD QUESTION What logistics function will AI have the most profound impact on? 24 ARTIFICIAL INTELLIGENCE AI and the essential supply chain worker 26 RISKS & REWARDS Securing the core through third-party risk management 28 VIEWPOINT Why we need advanced manufacturing
the National Motor Freight Traffic Association, Debbie Sparks helps drive digital transformation. 53 IT TOOLKIT: CONSTRUCTING EFFICIENT INVENTORY MANAGEMENT Kinnunen—a provider of construction and outdoor power equipment and services— levels up with a robust and unified ERP system offering real-time inventory insight and end-to-end capabilities.
Inbound Logistics (ISSN 0888-8493, USPS 703990) is mailed monthly to approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related services, by Thomas, a Xometry company, 6116 Executive Blvd, Suite 800, North Bethesda, MD 20852. Periodicals postage paid at North Bethesda, MD, and additional mailing offices. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by any electronic means, or stored in any information retrieval system, without permission from the publisher. Postmaster send address changes to: Inbound Logistics, P.O. Box 1167, Lowell, MA 01853-9900
2 Inbound Logistics • November 2024
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CHECKINGIN When Robotics, Starlink, and AI Converge: What’s Next?
Vol. 44, No. 11 November 2024 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com
STAFF
Keith G. Biondo publisher@inboundlogistics.com Felecia J. Stratton editor@inboundlogistics.com Katrina C. Arabe karabe@inboundlogistics.com
PUBLISHER
T he maturation and convergence of three technologies—robotics, Starlink, and artificial intelligence—will revolutionize the practice of supply chain management across the globe. I know you have heard that before, but this time it is not hyperbole. When these three technologies converge, much of how we manage logistics today will be legacy, a fading memory in a few short years. Let’s look at each.
EDITOR
SENIOR EDITOR
DIRECTOR OF STRATEGIC CONTENT
Amy Roach amy.roach@thomasnet.com
Merrill Douglas Tom Gresham Karen M. Kroll Gary Wollenhaupt
CONTRIBUTING EDITORS
Keith Biondo, Publisher
Robotics. The influence of robotics will be from the ground up—at the front lines of logistics, manufacturing, and ecommerce fulfillment once the third wave of automation plays out. Since its Kiva acquisition, Amazon has deployed 750,000 autonomous mobile robots, and that’s just in the United States. The company uses thousands of stationery robotic arms for packing. Other companies are following similar investments in fulfillment, warehouse, and manufacturing operations. Humanoid robots, when ready for Prime time, will be a fourth wave of automation. Starlink. Quite literally, from the top down to every corner of the globe and at every moment of every day, 6G tone connects every shipment from origin to destination, on land, on the sea, and in the air. Hawaiian Air, Qatar Airways, Air France, and Air New Zealand all offer free Starlink, with United Airlines soon to follow. Tagging high- value belly and all-cargo shipments is the next step. On the seas, you will track your container across every ocean, through every port, and COFC/ TOFC move. Starlink Minis on trucks will give you shipment visibility across the country or across town. Theft? Temperature? Damage? Delay? You’ll know instantly. Artificial intelligence. The impact of AI will be everywhere—tracking the explosion of datapoints and helping you pick the best path from all the real-time variables you must choose from. Many of those developments, while being applied with staggering speed, are still in their infancy and are not yet working in sync. But when they truly converge and entwine, it will drive an explosion in supply chain productivity and the world will truly be your warehouse.
Jeof Vita jvita@inboundlogistics.com
CREATIVE DIRECTOR
DESIGNER Arlene So
DIGITAL DESIGN MANAGER PUBLICATION MANAGER CIRCULATION DIRECTOR
Amy Palmisano apalmisano@inboundlogistics.com
Sonia Casiano sonia@inboundlogistics.com
Carolyn Smolin
SALES STAFF PUBLISHER: Keith Biondo
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Inbound Logistics supports sustainable best practices. Our mission is rooted in helping companies match demand to supply, eliminating waste from the supply chain. This magazine is printed on paper sourced from fast growth renewable timber.
Inbound Logistics welcomes submissions and comments. Email us at editorial@inboundlogistics.com; call (212) 629-1560. For advertising or subscription information, email publisher@inboundlogistics.com. Inbound Logistics is distributed without cost to those qualified around the world. Interested readers may subscribe online at bit.ly/get_il. Subscription price to others: in North America $95 per year. Unqualified subscription prices: foreign $229. Single copy price: N. America $50, foreign $100, back issues $50.
4 Inbound Logistics • November 2024
Less impact on the environment deserves more recognition. These SmartWay Partners are leaders in freight supply chain efficiency and environmental stewardship. They put sustained effort into sustainability, and their achievement reflects ours. This year, U.S. EPA’s SmartWay Transport Partnership marks 20 years of progress in empowering businesses like yours to move goods in the cleanest, most energy-efficient way possible while protecting public health and reducing the impact on the environment. Congratulations to the 2024 SmartWay Excellence Awardees!
Arrow Transportation Bridgestone Americas Tire Operations Canadian Reefers Ltd. Cargo Transporters Covenant Transport Crete Carrier Corporation CRST The Transportation Solution Inc D&D Transportation Services Inc Danny Herman Trucking Inc Discount Tire Divine Enterprises, Inc. Dollar Tree Stores, Inc Edgewell Personal Care Elevate Textiles, Inc. Forza Transportation Services, Inc Gap Inc. Canada Gap Inc. USA Georgia-Pacific Consumer Products LP GP Transportation Co
Knight Transportation, Inc. Kohl’s
Lowe’s Companies, Inc. May Trucking Company McDonald’s USA, LLC Meijer Mesilla Valley Transportation Mike Frost Trucking, Inc. Nussbaum Transportation Services, Inc. Ocean Spray Cranberries, Inc Paper Transport, LLC Prime, Inc. Royal Trucking Company Ryder Dedicated Transportation Solutions (DTS) Saia Motor Freight Line, LLC Schneider Swift Transportation Co. of Arizona, LLC The Home Depot U.S.A., Inc
The TJX Companies, Inc. Tractor Supply Company Trans-West Logistics Inc / Logistiques Trans-West Inc. Werner Enterprises Western Express, Inc.
Hirschbach Motor Lines Hogan Transports, Inc. Keane Thummel Trucking Inc. Kellanova Kimberly-Clark Corporation
To learn how your company can achieve excellence visit: epa.gov/smartway
10 TIPS
By implementing these action items, professionals and students can better prepare themselves for the complexities of modern supply chain management. Upgrading Your Supply Chain Skill Set
1 ASSESS POTENTIAL RISKS
8 ATTEND EDUCATIONAL WORKSHOPS. Keep abreast of new methodologies, technologies, and best practices through targeted training sessions. This ongoing education will empower you to implement innovative solutions in your work. 9 NETWORK WITH ALUMNI AND LEADERS. Utilize platforms such as LinkedIn to connect with former classmates and professionals in your field. Building a strong network can open doors to mentorship opportunities and valuable career advice.
WITHIN YOUR SUPPLY CHAIN. Sharpen your supply chain skill set by conducting a thorough risk analysis to identify vulnerabilities that could lead to disruptions. This proactive approach will enable you to create targeted contingency plans and ensure your operations can withstand unforeseen challenges. As asymmetric threats—unexpected challenges that arise without warning—become more prevalent, proactive contingency planning is a must for effective supply chain management.
2 DEVELOP CONTINGENCY PLANS. Learn how to deploy long-term strategies that not only address known threats but also consider asymmetric risks that lack a clear rule book. By having a comprehensive, flexible, and adaptable plan in place, you can quickly pivot when unexpected issues arise. 3 ENGAGE WITH INDUSTRY PROFESSIONALS. Attend networking events, workshops, and seminars where you can connect with experts in the field. Their insights can provide valuable perspectives on current challenges and emerging trends, enriching your understanding of supply chain management dynamics. 4 GAIN REAL-WORLD EXPERIENCE. Seek out internship opportunities that allow
6 UTILIZE TECHNOLOGY TO IMPROVE VISIBILITY. Explore tools that enhance real-time tracking and data analysis within your supply chain. Leveraging technology can help you respond more effectively to disruptions and streamline operations. 7 REVIEW SUPPLY CHAIN PROCESSES REGULARLY. Conduct audits to identify inefficiencies or areas that need improvement. Continuous evaluation will help you stay agile and ready to adapt to changes in the market.
you to apply theoretical knowledge in practical settings. This hands-on experience will significantly enhance your skill set and make you more competitive in the job market. 5 COLLABORATE ON CASE STUDIES. Work with peers to analyze situations such as the longshoremen’s strike or the impact of Hurricane Helene. These collaborative efforts will deepen your critical thinking skills and prepare you for similar challenges in your career.
10 EMBRACE CONTINUOUS LEARNING AS A FUNDAMENTAL ASPECT OF YOUR CAREER.
Stay curious and open to acquiring new skills, whether through formal education or self-directed study. As Robert Greene said, “The future belongs to those who learn more skills and combine them in creative ways,” underscoring the importance of adaptability in an ever-evolving landscape.
SOURCE: DR. ANIL VITARANA, EDUCATION COMMITTEE CO-CHAIRMAN, CONTAINERIZATION & INTERMODAL INSTITUTE (CII)
8 Inbound Logistics • November 2024
GOODQUESTION Readers Weigh In
What Logistics Function Will AI Have the Most Profound Impact On?
RISK MANAGEMENT because artificial intelligence (AI) enables predictive analytics. Reactive plans and over-engineered remediation will turn into proactive strategies that catch breakage and capacity constraints in supply chains before they emerge. –Mike Van Horn AVP, AT&T Connected Solutions, AT&T SUPPLIER AND CARRIER COLLABORATION. AI agents will transform collaboration through automation and real-time recommendations. They can make faster and more accurate decisions than humans in many cases and are always on. –Sriram Nagaswamy Executive Vice President, Technology, FourKites TASK OPTIMIZATION is an area where we will see significant changes. Whether an operations manager distributes work for the next 24 hours or a transportation planner determines routes, AI applications will have a tremendous impact on leveling up the multi-variable calculation element of task management far beyond that which a human alone can execute. –Jordan Lawrence VP Commercial Strategy, AutoScheduler.AI TRANSPORTATION MANAGEMENT SYSTEMS. AI will be used in freight management to advance TMS software functions. This will allow processes to improve and help with decision-making, providing true operational benefits. –Rick LaGore Co-founder and CEO, InTek Freight & Logistics
AI-driven route optimization will redefine delivery efficiency. By analyzing traffic patterns and environmental factors, AI will minimize travel time and costs, enhancing the reliability and sustainability of last-mile logistics. –Dennis Moon COO, Roadie Route Optimization
AI has the potential to not only lower cost (both fuel and labor), but also improve delivery speed, increase volume, and lower CO2 impact. It also offers the opportunity to respond in real time, whether that’s weather- dependent or a larger-scale crisis. –Raj Ramanan CEO, Jitsu
Pure-play AI is helping with better predictions. In the longer term, pure-play AI will start to replace algorithmic code. ChatGPT is not suited for supply chain functions that require sequential activities. –Tom Moore Founder & CEO, ProvisionAi Demand Forecasting
AI enhances demand forecasting by processing vast data sets, identifying patterns, and integrating external factors like climate and social trends. It simplifies complex forecasting as SKUs and market channels expand. –Mike Gross Chief Technology Officer, TrueCommerce
DISTRIBUTION CENTER MANAGEMENT. Continuously analyzing growing warehouse data sets will enable predictive AI to develop and deliver key recommendations to management during daily operations. Allocating staff and workload in real time to maximize service and efficiency will soon be more effectively performed by predictive AI engines. –Sandy Stephens
RATE MANAGEMENT, especially quoting. By utilizing AI-driven quoting, transportation teams can improve data quality, manage rates proactively as markets change, and mitigate risks more efficiently across all lanes. –Edmund Zagorin Founder & Chief Strategy Officer, Arkestro DATA INTEGRATIONS. AI will speed up data integrations between customers and their 3PL partners,
Chief Strategy Officer, HyTek Intralogistics LLC
10 Inbound Logistics • November 2024
GOODQUESTION
giving them agility and visibility across the supply chain. But, 3PLs will need to move fast; AI-enabled data integrations also make it easier for customers to switch providers. –Bart Bullard VP of Information Technology, Source Logistics INVENTORY MANAGEMENT. AI will create the ability to automatically see stock levels and initiate stock replenishment based on demand. This will help product availability and minimize manual inventory tracking. –Nick Shorthose Vendor Manager, Communisis DECISION INTELLIGENCE. Historically, logistics operations have been data rich but insight poor. AI will have a profound impact on our ability not only to quickly analyze and resolve situations by contextualizing data from disparate sources to drive intelligent decision-making, but to improve outcomes for the long term.
Risk mitigation
The List Goes On and On
Inventory management
Demand planning
AI is optimizing entire supply chains through improved data analysis and efficiencies to match supply with demand. Manufacturing, distribution, inventory management, demand planning, and marketing functions will all be impacted. –Barry Bradley Head of Supply Chain, Crisp
Supply chain simulation
Optimization
Data analysis
With a large dataset, AI will significantly impact all aspects of supply chain and logistics. With significantly rising inventory carrying costs driven by real estate, insurance, and employee costs, organizations need to use AI to optimize demand planning. –Tom Kieley CEO, SourceDay Where we see the biggest benefits right now are in risk analysis, supply chain simulation and optimization, and automating engagement across stakeholders. However, AI can and will drive much deeper transformation in our industry. –Neil Wheeldon Chief Digital & Innovation Officer, PSA BDP
–Ilya Preston CEO, PAXAFE
initiatives. The ideal scenario is that AI becomes a productivity multiplier across the entire industry. –Maneet Singh Chief Information Officer, Odyssey Logistics PICKING OPERATIONS. With 60-70% of labor costs tied to picking, AI’s ability to optimize routes, reduce errors, and predict demand offers massive efficiency gains. –Erhan Musaoglu CEO & Founder, Logiwa EXCEPTION MANAGEMENT. For example, when extreme weather like a hurricane or a black swan event like the Baltimore bridge collapse disrupts port operations, AI can help supply chain teams predict how the disruption would impact ETAs and proactively mitigate the effects by rerouting containers. –Chelsea Quint Product Marketing Manager, project44 DECISION SUPPORT. By integrating AI with human analysts and data analytics, companies can
enhance decision-making regarding asset acquisition and management, allowing for smarter capital expenditures. –Brian Antonellis CTP, SVP Fleet Operations, Fleet Advantage SUPPLY CHAIN EFFICIENCY. When items can be tracked through the supply chain, AI can predict demand, flag potential shortages, and automate replenishment cycles, helping to streamline operations. –Jeff Dossett Chief Revenue Officer, Impinj
CUSTOMER SERVICE. AI-powered chatbots/platforms will boost customer service by streamlining inquiries, tracking, and issue resolution, improving overall experiences and reducing costs. –Ari Widlansky PROCESS EFFICIENCY AND INFORMATION SHARING in the near term since AI enables intuitive onboarding and guiding users through tasks. In the long term, AI has the potential to revolutionize U.S. Managing Director and Chief Operating Officer, Esker supply chain logistics by synthesizing intelligence across risk mitigation and route optimization. –Doug DeLuca Product Marketing Manager, SAP Business Network PRODUCTIVITY. AI’s greatest impact won’t be on one thing like route optimization or inventory management. Rather, it will help connect all these functions, breaking down silos and refocusing workers on more strategic
Answer upcoming Good Questions at: www.inboundlogistics.com/ good-question
November 2024 • Inbound Logistics 11
LEADERSHIP Conversations with the Captains of Industry
Setting the LTL World on Fire
“I can see the potential in all things,” says Debbie Sparks, executive director of the National Motor Freight Traffic Association (NMFTA). “I like to take elements that could be enhanced and bring new life into them.” From the time Sparks took the helm at the nonprofit association in 2022, she has focused hard on enhancement. She has been working to drive digital transformation for the less-than-truckload (LTL) industry, help motor carriers transition to a digital era, adopt and strengthen their cybersecurity programs, and modernize the LTL freight classification system. Sparks spoke with us about the path to her current position, her leadership strategies, and some of her current activities. IL: You’ve worked in trucking for three decades. What has kept you in this industry? It’s the essential role that trucking plays in connecting people, businesses, and communities. Trucking is the backbone of our economy. Also, it’s a complex, fast-paced world, and often what professional truck drivers haul is critical, whether it’s components for a just-in-time assembly plant or a supply of lifesaving medications. Beyond that, I’m inspired by the camaraderie and shared responsibility you find in trucking. Motor carriers are generous, patriotic, and committed to helping one another and their communities. For example, when there’s a natural disaster, the trucking industry responds without hesitation: They show up at a local shopping center, load a trailer with cases of bottled water, and drive off to deliver it to people who need it. IL: What’s one incident from early in your career that taught you an important lesson? Early in my years in the trucking industry, I saw a colleague repeatedly fall asleep in meetings. Initially, I felt embarrassed, but I later learned he had narcolepsy. Decades later, one of our employees, a diabetic, dozed off due to low blood sugar during a membership meeting. This taught me the importance of compassion and understanding that what appears to be laziness or inattentiveness may actually be a medical condition. It reminds me that things are not always as they appear and to ask more questions before making assumptions.
Debbie Sparks Executive Director, National Motor Freight Traffic Association
When she isn’t working tirelessly to drive digital transformation, help carriers transition to a digital era, and modernize the LTL freight classification system, Debbie Sparks writes children’s books to spread the word about the rewards of becoming a truck driver.
by Merrill Douglas
12 Inbound Logistics • November 2024
LEADERSHIP
10-4 Good Buggy Besides leading a national organization that serves LTL carriers, Debbie Sparks also promotes the trucking industry in
webinars, and hearing what our membership is experiencing. Additionally, I constantly brainstorm ways to improve our current programs and initiatives, such as the National Motor Freight Classification, Standard Carrier Alpha Codes, digitization, and cybersecurity. IL: How would you describe your leadership style? I strive to balance transformational leadership with servant leadership. On the transformational side, we’re working to respond to the evolving needs of our members. With the upcoming changes to the NMFC and the redesign of ClassIT— our online freight classification tool—we’re demonstrating that we’ve listened to all our stakeholders, including LTL carriers, shippers, and third-party logistics providers. On the servant leadership side, I take pride in offering support where it’s needed, and volunteering to give back, all while focusing on serving our staff and members to ensure they have what they need to succeed. IL: How do you like to spend your time when not at work? Spending time with my son, who I adopted when he was 13, has been a joy. I’ve learned more than I ever imagined I could about avatars, Roblox, and the Harry Potter Hogwarts Legacy video game. I also enjoy the creative aspects of home renovation and remodeling. I always have graph paper and a pencil in my bag. I know every dimension of a dishwasher, refrigerator, or stove, so I can nail a kitchen in a heartbeat, and eyeball the size of a room or a window. n another role: writing children’s books. Together with co-author Linda Hagopian, Sparks has created 10-4 Good Buggy , a series of picture books that follows the exploits of professional truck driver Tripp Wheeler and his dog, Detour. “People aren’t raising their kids to be truck drivers,” Sparks says. Maybe that’s because they don’t realize how rewarding the job can be. She and Hagopian decided to spread the word. “Tripp became a truck driver because he wanted to go on adventures, and he got a job that paid his way to get there,” Sparks says. “He brings along his snow shoes, his fishing pole, and goes to all kinds of unique places.” Sparks and Hagopian have published two books to date and have a third in the works. “Getting into the mind of Tripp Wheeler and all his adventures is a happy place,” Sparks says.
IL: When you joined NMFTA as executive director, what initiatives topped your agenda? My first priority was people. I was tasked with ensuring that I had the right staff members with the right skill sets in the right seats, and that they were in line with our mission. Our board of directors has requested that we modernize and enhance our products and services and take our digitalization, cybersecurity, and LTL freight classification system efforts to the next level. IL: What are LTL carriers most worried about these days? One of their biggest concerns is the increasing complexity of cargo claims and theft. In the past, cargo theft typically involved stealing physical freight, but now cybercriminals hack systems, reroute shipments, and track high-value freight to intercept it, making the threat more sophisticated and harder to combat. When something is stolen and a shipper files a claim, managing that process can be extremely complicated. We’re working on these issues internally and collaborating with experts at organizations such as the Certified Claims Professional Accreditation Council, the Transportation & Logistics Council, and CargoNet. IL: What project excites you to get up in the morning? Reimagining the trucking industry is an ongoing process. It involves working with the board of directors and the staff to bring new perspectives and insights for them to consider. We need to learn, grow, and keep pace with the changing landscape while also supporting the needs of the membership. It’s also imperative that I explore new ways to attract and expand our membership. One new offering I’m excited to introduce to the LTL sector is a benchmarking program, which will provide key performance metrics across carriers’ operations. This will help our membership understand how they compare to their competitors, offering valuable insights to improve how they run their businesses. IL: If we followed you on a typical day, what would we see? You’d see me talking with our membership and staff— hearing their concerns, addressing their issues, removing obstacles, and determining the source to solve it. I also enjoy staying on top of the latest trends affecting our members by listening to podcasts, reading industry pubs, attending
November 2024 • Inbound Logistics 13
NOTED [ IN FOCUS ]
The Supply Chain in Brief
> RECOGNITION
> GOOD WORKS
• GEODIS honored Dayton Freight Lines as its 2024 Carrier of the Year. The award recognizes carriers that demonstrate excellence in on-time pickup, tender acceptance, claim settlement, performance trends and customer service.
• For the sixth consecutive year, Crowley will support Wreaths Across America to remember and honor military service members during wreath-laying ceremonies
this holiday season. The company will continue to provide ocean and land transportation and cross-docking services to deliver thousands of wreaths to participating cemeteries. • Three transportation company founders— Sharon Siar, Nicole Glenn, and Kristy Knichel —formed Gift of Freedom, an organization to help child sex trafficking survivors. The nonprofit is partnering with a strong referral network of organizations and counselors who can provide specialized care and rehabilitation for victims.
• Saia LTL Freight distributed more than 6,800 awards to its drivers, dockworkers, mechanics, and other select personnel who met a safety goal or reached a career milestone.
• Averitt was named Carrier of the Year by Dynamic Logistix for its performance in handling truckload and LTL services.
> GREEN SEEDS
n Wabash received a $1.6 million grant in partnership with the University of Delaware to integrate high- efficiency solar energy into refrigerated trailers and truck bodies. Wabash will utilize its proprietary EcoNex™ technology to enhance thermal efficiency and reduce energy consumption, while the University of Delaware will contribute its TuFF technology to strengthen and lighten the trailers using recycled aerospace-grade carbon fiber. n CMA CGM Group and SUEZ signed an agreement to produce renewable fuel for the vessels of the CMA CGM Group. The agreement plans for the production of up to 100,000 metric tons of biomethane per year between now and 2030.
> MILESTONES
n Japan Airlines (JAL) and CHAMP Cargosystems recently celebrated
one decade of successful partnership, and the anniversary of JAL going live with CHAMP's Cargospot cargo management system. n C.H. Robinson , the fourth-largest drop trailer provider in North America, has moved half a million drop trailer shipments this year on its way to record-setting volume. The 3PL is celebrating its 25th year of offering this service.
n Gebrüder Weiss is celebrating its 20th
anniversary in Serbia, offering customers in the region land, air, and sea freight transport, customs clearance, and logistics solutions.
14 Inbound Logistics • November 2024
NOTED
> M&A
> SEALED DEALS
n Moran Transportation Corporation acquired RMX Freight Systems of Ohio. This strategic acquisition enhances Moran’s capacity to
• DHL Supply Chain extended its long-standing partnership with Volkswagen Slovakia. Under the new agreement, DHL Supply Chain Slovakia will continue to provide intra-company logistics services for the Volkswagen Slovakia plant in Bratislava ( pictured ), including supplying production lines at the plant. • StarTech.com, a global technology manufacturer specializing in IT connectivity parts, selected John Galt Solutions’ cloud-based Atlas Planning Platform to power its digital supply chain planning transformation to support its global operations. • Rolls-Royce’s Power Systems division, with its mtu brand, will implement IFS Cloud to optimize its global service operations and support its strategic objectives of efficiency, sustainability, and growth.
serve customers across the Midwest while expanding direct service offerings into Ohio and parts of West Virginia. n Syntax Systems acquired Argon Supply Chain Solutions, an SAP Gold Partner specializing in warehouse management. This move enhances Syntax’s “boutique at scale” approach and ERP solutions in mining, manufacturing, retail and life sciences. n Groendyke Transport officially closed on the acquisition of the tank truck assets of Linden Bulk Transportation from Depot Connect International. The acquisition expands Groendyke’s footprint to Ohio, Pennsylvania, and New Jersey.
• Wesco, a chain of convenience stores in Michigan, has selected RELEX Solutions to unify its space, operations and supply chain planning. Wesco aims to increase product availability, optimize inventory management, minimize product spoilage, and implement automation to empower employees.
• DICK’s Sporting Goods is adding new supply chain solutions from the Inspectorio platform. After utilizing Inspectorio’s Responsible Sourcing and Inspection solutions for three years, DICK’s will now add the company’s Traceability and Transparency, Production Monitoring and Lab Testing into its supply chain operations. • To optimize ecommerce operations, cosmetics manufacturer ARTDECO has implemented LYDIA Voice, the pick-by-voice solution from Ehrhardt Partner Group. The picking solution replaces an outdated voice system at both of the company’s logistics sites and enables employees to process up to 48 orders simultaneously thanks to multi-order picking.
> SHOVEL READY
n The first development at the Cincinnati/Northern Kentucky International Airport’s Global Logistics Park has broken ground. The 4.5 acres of aeronautical property is being leased by
F&F LLC for the development of an 80,000-square- foot cargo facility with airside access to handle current and future general air freight needs. The facility will include cargo processing space, associated mezzanine offices, and a minimum of 18 truck docks. The site is expected to be complete in early 2025.
November 2024 • Inbound Logistics 15
TAKEAWAYS Shaping the Future of the Global Supply Chain
While intermodal rail has had somewhat of a rocky year, it appears to be ending strong. Total intermodal volume rose 9.8% year-over-year in the third quarter of 2024 ( see chart below ). International containers added 15.4% and domestic containers improved 6%, according to the Intermodal Association of North America (IANA). Trailers fell 11% during the same time period. “International volume continued to be the growth engine in the third quarter,” says Joni Casey, president and CEO of IANA. “We expect this strength to drive overall traffic through the end of the year.” The seven highest-density trade corridors, which collectively handled more than 60% of total volume, posted the following gains: 1. Southeast-Southwest: 25.9% 2. South Central-Southwest: 23.8% INTERMODAL RAIL REBOUNDS
HIGH COSTS DRIVING HO-HO-HUM HOLIDAY SEASON? Both retailers and consumers seem to have the same “item” at the top of their holiday wish lists this year: reduced inflation. Worries over the high cost of gifts —and the need to respond with corresponding business strategies that can help cut operating costs— have both groups concerned, shows data from Manhattan Associates’ latest Supply Chain Confidence Survey . The survey polled U.S. consumers and retail and supply chain/logistics executives, digging into insights on inflation, shortened holiday timelines, and political uncertainty. Consumers show clear opinions; 85% express concern over rising prices this holiday season and 64% indicate plans to cut spending on non-essentials , while 52% will prioritize discounts. In response, nearly 61% of supply chain leaders report having invested in new technologies and processes to run more efficiently and reduce overall costs this season. Retailers and supply chain executives also mention these strategies as part of their holiday 2024 game plans: • 70% plan to offer more promotions, with 56% using loyalty programs and 34% introducing flexible payment options. HIGH
3. Midwest-Northwest: 23.2% 4. Midwest-Southwest: 17% 5. Trans-Canada: 7.4% 6. Intra-Southeast: 2.7% 7. Northeast-Midwest: 0.4%
Intermodal Volume: Q3 2024 vs. Q3 2023
Units
9.8%
5,000,000
•
80% will utilize AI for better inventory management and customer service. 35% expect to implement automation technologies to control costs and handle peak demand.
4,000,000
•
3,000,000
6.0%
4.7%
15.4%
• 58% will increase their workforce to manage peak omnichannel demand. Agility also emerged as an important theme for peak-season prep. “Deploying the right technology is more critical than ever before,” notes Manhattan Associates’ Ann Sung Ruckstuhl. “Retailers’ focus on unified commerce and improved supply chain visibility is expected to help meet consumer demands for a smooth holiday shopping experience.”
-11.0%
2,000,000
1,000,000
0
Trailers
Domestic Containers
All Domestic Equipment
ISO Containers
Total
2023
2024
Source: IANA
16 Inbound Logistics • November 2024
TAKEAWAYS
In the first nine months of 2024, AI-related deals accounted for 33% of total investments into venture capital-backed companies based in the United States. That’s up from 14% in 2020 and could go even higher in the years ahead. AI deals accounted for 37% of the $38 billion raised by VC-backed companies in Q3 2024, with four of the 10 largest deals involving AI-related companies, according to CrunchBase data analyzed by EY. AI IS WINNING THE VC GAME
PORT OF BALTIMORE GETS STACKED Helping to boost the Port of Baltimore’s comeback efforts after the Francis Scott Key Bridge collapse earlier this year is the recent launch of double-stacked rail operations at the port. The enhanced rail offerings open new opportunities for intermodal rail service in the Northeast and from the Port of Baltimore to Midwest markets. As an added bonus, the project was completed several months earlier than expected. The port estimates that double-stacking containers will help grow its business by about 160,000 containers annually and will create 13,000 new jobs in construction and operations. Double-stacking will also complement the expansion of the Seagirt Marine Terminal, operated by Ports America Chesapeake, as home to supersized Neo-Panamax cranes that handle ultra- large containerships. Officials tout enhanced transportation cost efficiency and environmental gains as additional benefits of double-stacking. While construction is still ongoing at several Maryland sites, vertical clearance improvements at rail bridges north of Baltimore are complete, providing rail carrier CSX the opportunity to operate double-stack rail service on a temporary route from the Port of Baltimore along the CSX network in Pennsylvania, New Jersey, New York, and onto the Midwest. “Adding double-stack capabilities to and from the Port of Baltimore allows us to take our container business to another level and puts us on a more level playing field with our competitors,” said Maryland Port Administration Executive Director Jonathan Daniels when announcing the launch.
OVERHEARD
“ Claims of long-term driver shortages are spurious and not likely to be helpful in explaining the sector’s driver turnover patterns and the possible influences of compensation. Research indicates that driver retention and turnover rates experienced by truckload carriers can be explained in part by the cyclical factors experienced across all carriers in the sector and trucking generally.” — Pay and Working Conditions in the Long- Distance Truck and Bus Industries report, National Academy of Sciences
November 2024 • Inbound Logistics 17
TAKEAWAYS
PROXIMITY RULES
THE PROXIMITY TIMELINE Executives are prioritizing immediate strategic shoring actions 1%
While global sourcing has been an accepted business strategy for several decades now, long and globalized supply chains have proven vulnerable to disruption. As a result, proximity to the U.S. market is emerging as a primary value driver in supply chain strategy, according to a new KPMG report, The Proximity Premium . With growing geopolitical and economic uncertainties, executives say that speed-to-market and supply chain resilience have become priorities for U.S.- based companies. The survey, which polled 250 leaders from businesses with at least $1 billion in annual revenue, details how U.S. companies are leveraging proximity for resilience in supply chains. Here are some key findings: Nearshoring Gains Favor: • 73% of surveyed executives report improved supply chain efficiency through strategic shoring. • Companies are concentrating supply chain locations within the Americas, projecting a 16% increase in U.S.-focused supply chains. Shift in Strategic Priorities: • 81% expect the majority of their U.S.-serving supply chains to operate within the Americas after strategic shifts. • 66% of executives cite political and economic uncertainties as major factors driving supply chain reevaluation. Evolving Goals: • Flexibility (27%), speed (28%), and sustainability (27%) have gained importance, reflecting a shift from cost-focused strategies, which decreased from 37% in 2022 to 33% in 2024.
23%
43%
23%
Source: KPMG
A leading business priority for next 1-2 years A major business priority this year A business consideration over next 1-5 years Under discussion but not a priority
CEOs CLOCK TIME ON SCM Will you spend more or less time on supply chain-related topics compared to last year?
With a general consensus that the operating environment over the next 12 months will continue to be challenging for businesses, leaders are being strategic about where they focus their time and efforts. One area rising to the top is supply chain management, according a new report from Proxima. In its Supply Chain Barometer , 3,000 CEOs from the United States, U.K., and Europe share insights on the challenges and priorities ahead. It’s clear that supply chain is cemented in the C-suite agenda for the foreseeable future: A striking 96% of CEOs are set to spend the same (41%) or more (55%) time on supply chain-related topics this year ( see chart ). Just 4% of CEOs foresee the amount of time spent on supply chain-related topics decreasing in the year ahead. Among the 55% of CEOs spending more time on supply chain issues, the majority anticipate an increase of up to 20%, equating to as much as one day a week more. Figures were highest among CEOs within the private equity (47%), media and entertainment (45%), and leisure and hospitality (43%) sectors. CEOs planning to spend an additional 10% or more of their time on supply chain-related topics were greatest within the industries of communications and high-tech (76%), health and pharmaceuticals (72%), and construction (70%), reflecting the complexities involved in emerging high-value supply chains.
4%
41%
55%
More
The same
Less
Source: Proxima
18 Inbound Logistics • November 2024
TAKEAWAYS
While consumers gear up for holiday purchases, retailers are already prepping for the onslaught of expected returns. Top of mind for retailers wishing to optimize holiday-driven reverse logistics are topics such as the rise of returns fraud, the role of AI in mitigating returns, inventory management strategies, and shifting returns policies , among others. A recent survey of U.S. retailers, conducted by returns management solutions provider goTRG, shows that retailers are more focused than ever on addressing the ongoing challenge of returns. ( See their top priorities below. ) With holiday retail sales predicted to increase between 2.3% and 3.3% in 2024 according to Deloitte’s annual holiday retail forecast, the focus on returns is apt. The backdrop of significant economic and political uncertainties surrounding this year’s peak season also influences how retailers plan and execute their holiday strategies. Here are some of their top concerns and focus points, according to the report: • 63% of retailers categorize returns as a severe or significant problem. • 60% of retailers raised prices in the past 12 months to offset the growing costs associated with returns. • 47.4% of retailers are already utilizing AI to minimize return rates by offering more detailed product descriptions and sizing information, thus improving purchasing confidence. • 52.4% of retailers indicate that returns fraud worsens during the holiday season. • In 2023, return fraud ballooned into a $101-billion issue, affecting 13.7% of all returns, according to NRF. To combat these challenges, 52% of retailers are implementing one or more preventative measures. • Respondents indicate the top three forms of returns fraud are the return of used, non-defective merchandise (17%), the return of merchandise purchased with stolen or otherwise illicit payment methods (16%), and the return of shoplifted or stolen goods (14%). READY, SET… RETURN
Building more resilient, adaptable operations to handle future disruptions is rapidly becoming a top priority for supply chain leaders. What are the key elements needed to build such resilience? Investing in risk management strategies, advanced technologies, and external partnerships to stabilize operations were among the responses from 300 industry decisionmakers recently surveyed by R.R. Donnelley & Sons Company (RRD). In its Future-Ready Supply Chain Report , supply chain leaders indicate that they plan to make substantial adjustments within the next two years to boost their operations to respond to supply chain disruptions. When it comes to risk management, their priorities include: • Forming relationships with alternative suppliers (69%). • Increasing reliance on domestic suppliers (67%). • Frequently updating risk assessments to adapt quickly (50%). Respondents are also investing in technology tools such as real-time visibility, IoT, and predictive analytics to boost resilience. They also cite strategies such as: • Using AI for supply forecasting (59%). • Using AI for visibility and operations (56%). • Adopting advanced order management systems for agile fulfillment (60%). Sustainability also plays a role in future planning; top priorities include sustainable logistics and sourcing. And 63% of companies expect to increase outsourcing over the next two years, primarily for speed and scalability. FUTURE-READY SUPPLY CHAINS
Source: goTRG
November 2024 • Inbound Logistics 19
KNOWLEDGE Base SPONSORED CONTENT
The 2024 MHI Annual Report, “The Collaborative Supply Chain,” shows companies are leveraging artificial intelligence and other technologies in a human-centric way. Investment Growth Seen in Supply Chain Technologies that Empower Human Workforce
A rtificial intelligence (AI), robotics, and automation have dominated the supply chain technology adoption conversation over the past year. Recognition of their ability to enhance resilience amid unpredictability and improve environmental responsibility has contributed to companies’ increased investment in these innovative solutions.
Additionally, 47% of those surveyed report an increased focus on using AI for decision-making. However, supply chains are not relying on AI to make critical decisions. Rather, it’s being used as a tool to help humans make more informed decisions as part of a collaborative supply chain. The report is available as a free download at mhi.org/publications/report. MHI is currently conducting the survey for the 2025 MHI Annual Industry Report. To participate, add your input at: surveymonkey.com/r/AIR2025. Five Trends Impacting Supply Chains The survey also asked supply chain leaders to identify the key trends they expect will impact their operations moving forward. The top five were: 1. Supply Chain Agility 2. Rising Costs 3. Workforce 4. Environmental, Social, and Governance (ESG) 5. Visibility and Transparency To discover AI and other cutting-edge technologies propelling the supply chain forward, visit ProMat 2025.
(51%), insight into customer behavior (50%), and supply chain disruptions and shortages (50%). In terms of investment plans, 55% of supply chain leaders have increased their supply chain technology and innovation budgets. Further, 88% plan
to spend more than $1 million and 42% have allocated more than $10 million for supply chain investments. Across the board, businesses are increasing the adoption of all the 11 digital supply chain technologies covered in the report and are applying human-centric strategies when using these technologies. Digital solutions are being used to enable decision-making and visibility into data (44%); to improve long-term resiliency and sustainability (42%); to achieve higher efficiency and operational optimization (40%); to empower the human workforce (39%); to manage daily activities (29%); and to enhance personnel safety (22%). AI adoption and interest are at historic levels, with 85% of survey respondents reporting plans to incorporate AI technologies within the next five years. AI is already used in supply chain areas, such as demand forecasting, maintenance planning, scenario analysis and optimization, and supplier assessments.
Now, supply chain organizations’ focus is on leveraging these technologies in a human-centric, collaborative way that empowers workers to be more productive and make better decisions. This was the overarching trend uncovered in the 2024 MHI Annual Industry Report, produced in collaboration with Deloitte, titled “The Collaborative Supply Chain: Tech-Driven and Human-Centric.” The current focus on technology in supply chains is clear and undeniable. The companies that deploy these technologies most successfully, also recognize that supply chains are run by people. They prioritize this human- centricity, which is key. Supply Chain Leaders Share Biggest Challenges, Investment Plans When asked about the supply chain challenges these leaders face, price increases from inflation (53%) was at the top of the list followed by the talent shortage (52%), customer demands
–By John Paxton
CEO MHI mhi.org customerservice@mhi.org 704-676-1190
ProMat 2025 will be held March 17-20 at Chicago’s McCormick Place. You can choose from more than 200 free education sessions, hear dynamic keynotes (including the release of the 2025 MHI Annual Industry Report), and visit more than 1,100 exhibitors showcasing the latest innovations. For more information or to register, please visit promatshow.com.
20 Inbound Logistics • November 2024
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